Insurers alert to higher cyclone, flood risks in Australia

The threat of tropical cyclones remains high in northern Australia.

FM Global cautions commercial property owners and risk managers about the upcoming year, as Australia’s Bureau of Meteorology (BOM) forecasts above-average rainfall in parts of eastern and western Australia, warmer-than-average days and nights across most of the country, and unusually high minimum temperatures in northern and eastern regions in 2024/2025.

The threat of tropical cyclones remains high in northern Australia, particularly in Queensland and the Northern Territory. 

These weather events can bring destructive winds, torrential rain, and storm surges, causing extensive property damage. Buildings should be cyclone-rated, with reinforced structures and secure roofing. Emergency response plans and comprehensive insurance coverage can reduce financial losses.  

Whilst BOM has reduced the likelihood of a La Niña event forming in late 2024, the potential remains, particularly in eastern and northern regions. Increased rainfall under such conditions elevates flood risks.

As the 25th anniversary of the 1999 Sydney hailstorm is marked—a disaster that caused A$1.7b in insured damages—the risk of hailstorms persists.